Question

What are the essential differences between social insurance and public assistance programs? Why is Medicare a social insurance program, whereas Medicaid is a publoc assistance program? Why is earned income tax credit considered to be a public assistance program?

Answer 1

Social insurance program is a government sponsored program which has few characteristics and they are the benefits,requirement eligibility and other is defined by the statute.Medicare,medicad are all examples of social insurance program.Social insurance is a protection against various economics risks.Social insurance may differ from the private ones in many ways.Social insurance is important because it allows any person to access their basic needs for them.Public assistance program is commonly called as welfare and this seeks to provide aid to certain classes of individuals who are poor not all the people below poverty are eligible for this there are certain criterias such as people who are not responsible for their poverty.There are three types of assistance in cash provided and they are 1.TANF2.SSI 3.EIC.Both can be used to pay for health care and other medical expenses but medicare is aged based insurance program for ages 65 and over but medicad assistance is for the needy Americans of all ages.An earned income tax credit is a benefit for working people with low to moderate income done or made to help reduce poverty especially for families with children and there is no age bar restrictions and the amount of EITC benefits depend upon a recipients income and number of children.